New sources of clustering in the digital economy

Abstract

Using a sample of 29 virtual clusters, the paper examines new sources of clustering in the digital economy. The “virtual cluster” phenomenon highlights the most significant effect of the development of the information and communication technologies in the business environment. A virtual cluster is conceived as an e‐business community, made up of customers, suppliers, distributors and commerce providers sharing digital and knowledge networks for collaboration and competition. The purpose of this paper is to set out the characteristics of a new competitive space, in which a strategic role is played by virtual processes among partners, and to review the traditional sources of clustering in the digital economy environment (Romano et al., 1999). More specifically, this paper attempts to show the emerging overlap between digital and knowledge networks, which generates a new competitive space within a new global‐virtual learning environment. Finally, assuming that traditional sources of clustering are generally identified in specialisation (based on a sophisticated division of labour) and geographic proximity, the paper discusses how the role of organisational proximity acts as a substitute for geographic proximity in supporting coordination and tacit knowledge exchange. As it emerges from the analysis of our cases, from a managerial point of view, organisational proximity may be achieved through the implementation of supply chain management (SCM) and customer relationship management (CRM) strategies. An earlier version of this paper was presented at the 23rd Institute of Small Business Affairs Annual Resource and Policy Conference in November 1999 in Leeds, UK.

Citation

Romano, A., Passiante, G. and Elia, V. (2001), "New sources of clustering in the digital economy", Journal of Small Business and Enterprise Development, Vol. 8 No. 1, pp. 19-27. https://doi.org/10.1108/EUM0000000006813